WHITTIER, Calif., May 2 /PRNewswire-FirstCall/Friendly Hills Bank
(OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the first
quarter of 2007, its second full quarter of operations. The bank
opened for business on September 18, 2006. As of March 31, 2007,
the bank reported total assets of $32.7 million, rising 36% from
$24.1 million on December 31, 2006. The bank continued its strong
deposit growth with deposits doubling to $17.8 million from $8.9
million as of December 31, 2006. Noninterest-bearing deposits had
the largest increase during the quarter, tripling to $8.7 million
from $2.9 million on December 31, 2006. Interest bearing deposits
advanced 58% from $6.0 million to $9.2 million on March 31, 2007.
Likewise, the bank has continued to grow its loan portfolio, which
totaled $5.8 million on March 31, 2007. Of this amount,
approximately $3.6 million, or 62% of funded loans, are Commercial
& Industrial loans to local businesses. The bank has an
additional $6.3 million in unfunded loan commitments. The bank
reported a quarter end loss of $304,000, which includes a loan loss
provision of $26,000. The March 31, 2007 quarter end net loss was
$292,000 or 49% lower than the December 31, 2006 quarter end loss
of $596,000. These numbers also take into account for both quarters
the new accounting rule that requires companies to include stock
compensation as an expense. "We are very pleased with the early
successes of Friendly Hills Bank," commented Jeffrey K. Ball, Chief
Executive Officer of the Bank. "Our relationship approach to
banking with a focus on the communities we serve is already showing
in our numbers with over 56% of our deposit base in lower cost
transactional accounts. Likewise, our loan portfolio is primarily
composed of Commercial Loans which are relationship driven. We
believe this provides a strong platform for the continued growth
and development of the bank." Friendly Hills Bank is a community
bank which was formed to primarily serve the Southern California
communities of Whittier, La Habra, Santa Fe Springs and La Habra
Heights, as well as the surrounding markets of Los Angeles and
Orange Counties. The bank was established in 2006 by prominent
members of the local community who were seeking an alternative to
the larger financial institutions in the area. The bank is
headquartered at 16011 E. Whittier Blvd. in Whittier, California.
For more information on the Bank, please visit
http://www.friendlyhillsbank.com/ or call 562-947-1920. The numbers
in this press release are unaudited. Certain statements in this
press release, including statements regarding the anticipated
development and expansion of Friendly Hills Bank's business, and
the intent, belief or current expectations of the Bank, its
directors or its officers, are "forward looking" statements (as
such term is defined in the Private Securities Litigation Reform
Act of 1995). Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward looking statements. These
risks and uncertainties include, but are not limited to, risks
related to the local and national economy, the Bank's performance,
regulatory matters and those discussed in filings by the Bank with
the Federal Deposit Insurance Corporation. Friendly Hills Bank
Consolidated Balance Sheet (Unaudited) 12/31/06 3/31/07 Assets Cash
and cash equivalents $558,545 $1,344,566 Fed funds sold 9,015,000
16,015,000 Investment securities available-for-sale 8,802,262
8,454,737 Loans, net of unearned income 4,543,658 5,773,660
Allowance for loan losses (56,686) (82,775) Net loans 4,486,972
5,690,885 Premises and equipment, net 1,061,661 1,074,361 Accrued
interest receivable and other assets 174,284 160,953 Total Assets
$24,098,724 $32,740,502 Liabilities Deposits Noninterest-bearing
deposits $2,865,127 $8,666,339 Interest-bearing deposits 6,021,210
9,161,699 Accrued interest payable and other liabilities 135,477
78,855 Total Liabilities 9,021,814 17,906,893 Stockholders' Equity
Common stock 15,957,620 15,957,620 Accumulated deficit (945,306)
(1,249,074) Additional paid-in-capital 84,102 139,602 Accumulated
other comprehensive loss (19,506) (14,539) Total Stockholders'
Equity 15,076,910 14,833,609 Total Liability & Stockholders'
Equity $24,098,724 $32,740,502 Friendly Hills Bank Statement of
Operations (Unaudited) 9/18/06 - 12/31/06 3/31/07 Interest Income
$297,095 $378,724 Interest Expense 35,294 56,113 Net Interest
Income 261,801 322,611 Provision for Credit Losses 56,686 26,089
Net Interest Income after Provision for Credit Losses 205,115
296,522 Other Income 8,370 13,300 Operating Expenses 809,894
613,590 Loss before Provision for Income Taxes (596,409) (303,768)
Provision for Income Taxes -- -- Net Loss $(596,409) $(303,768)
Basic Income (Loss) Per Share $(0.37) $(0.19) Book Value Per Share
$9.33 $9.18 Shares Outstanding 1,616,000 1,616,000 DATASOURCE:
Friendly Hills Bank CONTACT: Jeffrey K. Ball, Chief Executive
Officer, or George W. Peterson, Chief Financial Officer, both of
Friendly Hills Bank, +1-562-947-1920 Web site:
http://www.friendlyhillsbank.com/
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